Updated with stock price moves
NEW YORK (
was among the losers of the financial sector Friday after the U.S. bank said fourth-quarter revenue was below Wall Street's expectations.
posted a fourth-quarter profit of 74 cents a share on revenue of $25.2 billion, compared to the Thomson Reuters average estimate for earnings of 61 cents a share on revenue of $27 billion. The bank said it added $1.9 billion to its consumer loan loss reserves in the quarter, raising its firm-wide credit reserves to $32.5 billion.
"Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm's earnings potential," CEO and Chairman Jamie Dimon said in the release.
During the bank's earnings conference call, CFO Michael Cavanaugh said JPMorgan has a "cautious outlook" for 2010. The bank also said it has set aside $9.3 billion for compensation, which has been a subject of public ire.
Shares of JPMorgan were lately down 2% to $43.81.
JPMorgan was also among several credit-card issuers releasing monthly credit card metrics Friday. JPMorgan said delinquencies rose to 4.94% in December from 4.90% in November. Net credit losses fell to 7.11% last month from 8.81% in November.
Bank of America
reported December total delinquencies of 7.44%, compared with 7.69% in November. However, defaults rose to 14.01% last month from 13.43% the previous month. Bank of America shares were losing 3.3% to $16.27.
Capital One Financial
also saw charge-offs rise while delinquencies fell. Capital One said its annualized net charge-off rate increased to 10.14% last month from 9.6% in November. The delinquency rate slipped to 6.55% from 6.60% in November. Shares were down 1.5% to $41.03 on the data.
said its net charge-off rate fell to 8.68% in December from 8.98% the month prior. The delinquency rate also dipped to 5.49% from 5.65% in November. However, Discover shares were falling 1.9% to $14.69.
Most other bank stocks were trading lower in sympathy.
lost 2% to $3.44,
was down 3.7% to $27.93,
surrendered 1.6% to $165.76, and
slid 2.5% to $30.43.
Among regional bank stocks,
fell nearly 1% after R.W. Baird analysts initiated coverage of the stock with a neutral rating and $7 price target. The firm said the risk/reward level is currently balanced.
Regions shares were down 0.8% to $6.50, and other regional bank stocks traded lower as well.
gave back 2.7% to $27.76,
shares were off 1.3% to $23.40, and
Fifth Third Bancorp
lost 3.1% to $11.41.
-- Written by Robert Holmes in Boston
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